The Nikkei ended lower as exporters' stocks lost out after the yen hit a two week high against the US dollar, following Bank of Japan (BoJ) governor Haruhiko Kuroda comments, who said the real effective exchange rate shows the Japanese currency as "very weak".

The Shanghai Composite finished a tad lower following US index provider MSCI's decision to defer the inclusion of mainland-traded A-shares on its emerging market index. Investor sentiment was also pulled down after the People's Bank of China (PBoC) said in a report that the central bank's economists had lowered their 2015 growth forecast to 7% from 7.1%.

Chris Weston, IG's chief market strategist said in a note to clients: "The prospect of a pullback remains elevated in the Chinese markets, but given real yields are on the rise, I think we can expect a cut in benchmark interest rate or banks' reserve ratio requirements within the coming weeks, which means pullbacks in mainland markets should be supported."

Elsewhere, the ASX rebounded on the back of comments by Reserve Bank of Australia (RBA) governor Glenn Stevens, who indicated that the central bank was "open to the possibility" of more interest rate cuts if needed.

The Sensex gained on the back of MSCI's decision to delay enlisting China A-shares on its index.

Capital Economics said in a note to clients: "Indian consumers have struggled in recent months despite the tailwinds of lower inflation and reductions in interest rates. This can be explained in part by continued problems in the labour market and the domestic banking system. With progress in reducing bottlenecks in these areas still slow, household consumption looks set to remain subdued."

Company stocks

In Tokyo, Hino Motors fell 4.25% while rival Isuzu lost 2.87% after Citigroup downgraded the truck-makers' rating to "neutral" from "buy".

In Shanghai, China National Nuclear Power Corporation (CNNPC) soared 44% to 4.880 yuan in its market debut.

Retailers JB Hi-Fi, Myer and Havey Norman lost 3.58%, 1.85% and 1.70% respectively after the Westpac-Melbourne Institute consumer sentiment index dropped 6.9% in June from 102.4 to 95.3. A reading above 100 highlights optimism, while a figure below 100 points to pessimism on current economic conditions and respondents' personal finances.

Hanatour Service lost 2.78% while Hotel Shilla lost 2.31%. Hyundai Department Store and rival Shinsegae lost 3.42% and 2.74% respectively.

However, construction firm Samsung C&T surged 10.29% after a shareholder, US activist hedge fund Elliott, said it was seeking an injunction against the firm to block a proposed $8bn takeover offer from Cheil Industries. Cheil lost 2.19%.